- The price of oil is on the bid amid intensifying political tensions in Venezuela and following a weekly surge in U.S. crude stockpiles data.
- WTI is currently trading at $53.22bbls, just below the $53.56bbls high and up from a low of $52.11bbls spot.
As we run into the close on Wall Street the price of oil is consolidated just below the session highs despite the Energy Information Administration reporting earlier in the day that domestic crude supplies climbed by 8 million barrels for the week ended Jan. 18. Bears were looking for a fall of 600,000 barrels expected. The American Petroleum Institute on Wednesday had reported a climb of 6.6 million barrels.
The downside in oil is compelling on the supply and demand front, and prices were pressured due to the recent warnings for 2019 global growth and disappointingly weak economic data from China. However, bulls are back on control as investors look to the bullish developments for oil in Venezuela considering that the country holds the rotating presidency of OPEC this year and if sanctions are put forward. Prices are likely to volatile until there is some clarity relating to Venezuela, but some analysts at calling for a surge to $70 if the situation escalates. The Trump administration has put together a set of restrictions on Venezuelan crude exports but still has not decided whether to deploy them yet.
WTI levels
From a technical perspective, the weekly hanging man and the daily doji following the fresh high at the start of this week has failed to encourage sellers below the 52 handle and bulls look to the 15th Jan highs at 53.54. A break there will open up the 54 handle and recent doji daily highs at 54.48. The 38.25 fibo is located at 55.56. To the downside, 52 the psychological figure ahead of the 23.6% Fibo and confluence of the 13th Jan swing lows at 50.63 will all be targetted.
- Support levels: 52.00 51.70 50.91 49.93
- Resistance levels: 53.47 54.45 55.24
Share
